
25 Sep Investment returns have been good, but they are likely to slow over the next 5 years
Key Points:
- The ongoing slide in investment yields across major asset classes points to a more constrained mediumterm return outlook. For a diversified mix of assets, this has now fallen to around 5.6% pa on our projections.
- The key for investors is to have realistic return expectations; allow that inflation is also low so real returns aren’t down as much; and focus on assets with decent and sustainable income.